QA test 3 review

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One PERT/COST assumption is that money is spent at a constant rate over the time taken to complete an activity
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Terms in this set (30)
Two characteristics of arrivals are in the line length and queue disciplineFalsepercent idle time plus percent utilization equals onetruein a single channel, single phase system, reducing the service time only reduces the total amount of time spent in the system not the time spent in the queueFalseIn order to analyze a queue using a single channel single phase model, customer interval time must be lower than service timeFalseif we are studying the arrival of automobiles at a highway toll station we can assume an infinite calling populationtruea bank with a single queue to move customers to several tellers is an example of a single channel systemFalsea goal of many waiting line problems is to help a firm find the ideal level of services that minimize the cost of waiting and the cost of providing the servicetruethe goal of most waiting line problems is to identify the service level that minimizes service costFalseLittle's flow equations are advantageous because if one characteristic of the operating system is known the other characteristics can be easily foundtrueOne difficulty in waiting line analysis is that it is sometimes difficult to place a value on customer waiting timetrueThe costs involved in a typical inventory model are, order costs, management costs, and holding costsFalsein the decoupling function, some inventory may be stored between each production process to act as a bufferTrueinventory is the common thread that ties all the functions and departments of the organization togetherTrueinventory is any stored resource that is used to satisfy a current or future needTruethe purpose of the EOQ model is to achieve a balance between the cost of holding inventory and the cast of stockoutsFalseinventory is such an expensive asset that it may account for as much as 50% of a firm's invested capitalTruea stockout is a situation that occurs when there is no inventory on handTruean increase in holding cost will increase the economic water quantity holding all other factors constantFalseService level is the change, measured in percent, that there will be a stockoutFalsethe reorder point occurs during a stockoutFalse